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This paper investigates the strategic effect of bundling when a multi-product firm producing two complements faces … competition in both markets. I consider a demand structure where both Cournot and Bertrand competition can be evaluated. Bundling … by the multi-product firm. Bundling drives prices up, and not only consumer surplus, but also social welfare shrinks …
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In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...
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In a framework of a unionised international Bertrand duopoly with differentiated products, this paper analyses national labour market interdependencies and the consequences of trade liberalisation for union wages. The analysis suggests that national wages are likely to be strategic complements...
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